HFA IRISH SOCIAL & AFFORDABLE HOUSING PROGRAMME

The project is financing the Irish social and affordable housing development programme for the next four years period.

By increasing the supply of social housing, the project will help reduce the degree to which income is a factor in securing suitable housing thus delivering greater social inclusion while the refurbishment component of the project is expected to contribute to the physical rejuvenation of urban areas. Given the robust regulatory and urban planning framework in Ireland, the project is expected to be informed by a planning-led approach to urban development. Therefore, the project is in line with the Bank's criteria on sustainable cities and communities and urban renewal, following the EU Pact of Amsterdam and Leipzig Charter, and is thus eligible for Bank financing under Article 309 point (c) common interest of the Treaty on the Functioning of the European Union,

The project addresses a market failure in housing by increasing the supply of social and affordable housing notably for rent, thereby improving the flexibility and functioning of the housing market, and offering greater housing options for low and medium income households and vulnerable groups. The investments are also expected to improve the social mix and to promote greater social inclusion. Given the structure of the underlying business (HFA disburses in very small amounts to various final beneficiaries with unpredictable drawdown timing) the modality of the EIB financing (small amount of individual disbursement tranches, availability period, choice of repayments, etc.) provides significant added value compare to what could be achievable on the capital market. Furthermore direct access to EIB financing would allow HFA diversification of its funding source and reduce reliance on NTMA financing. Given the multi-annual timeframe of the construction period the availability of funding through the EIB facility would ensure some continuity of the sector development even in stressed situation. Finally the long-term nature of EIB financing will support HFA financial policy to lengthen its debt profile to better match its asset/liability structure.

Compliance with the relevant EU Directives will be verified during appraisal: EU EIA Directive 2014/52/EU amending the EU EIA Directive 2011/92/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. The status of any environmental studies and public consultations related to the urban renewal, upgrading and construction investments will be reviewed during project appraisal. Energy efficiency requirements in line with the EU Directive on the Energy Performance of Buildings 2010/31/EU will also be further assessed during project appraisal. The proposed investments will improve the level of social inclusion throughout the country by modulating income as a factor in the decision where to live.

The Bank will require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/24/EU, as well as Directives 89/665/EEC) as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.